Term insurance

POSTED BY RAJESH PAI ON May 24, 2011 6:56 pm COMMENTS (11)

recenty new online term insurance is launched by Aviva called Aviva I life .

Can we go for the Aviva i life or kotak e-preffered online term plan

11 replies on this article “Term insurance”

  1. Dear FFC, yes points wel noted. In fact the report also indicates one interest thing, the policies filed for claim are how much old & that’s where the problem lies. The majority of disputed claims are in below 3 months & 6 months window.



    1. Yes. Thanks for pointing this out. Unfortunately if they had less than 2 years and more than 2 years it would have been great. Then we can see how many insurers take section 45 of the insurers act seriously.

  2. Dear FFC, Please check the report on page no. 174. Death claims.
    For Aegon Religare total no. of policies claimed for = 274
    Total sum assured at stake = 16.15 Crore
    hence Avg. Sum Assured (ASA) per policy = 589500 Rs.

    For Aviva, ASA = 318800

    For Bharti, ASA = 250000

    For HDFC, ASA = 208250

    For ICICI Pru, ASA = 152000

    For Kotak, ASA = 285800

    For Metlife, ASA = 370400

    for Big Daddy LIC, ASA = 94000

    This is total claim figure, not the accepted one.



    1. Yes I see what you mean. Thanks I have looked at the numbers.
      If we look at the amt paid per policy under 3 columns

      total claims
      claims paid and
      claims repudiated

      the ratio for LIC is near constant and varies widely much for others. (the std deviation is about 10 higher for AVIVA)
      The claims repudiated ratio is much higher. So I would like to think higher the SA higher the chances of repudiation for the privates is higher (all other things being equal).

      This does not mean LIC is better. The point you made about most of the LIC policies being small (in terms of SA) is valid. One does not need the report for this.
      However the report does not give me any information that the majority of claims made to pvt insurers are from term plan nominees. It only tells me higher the SA higher the chances of claim rejection.

      Of course there are unknown factors like % of genuine claims, % of claims with data falsification etc. We cannot assume all claims repudiated are problematic ones. This is naive.

      Perhaps the only valid conclusion I can come to is the variation in the 3 ratios for LIC is much smaller. So I can push this a littler further in terms of interpretation but choose not to.

      Not trying to say LIC is better. At the very least one can safely conclude that, higher the SA, the privates scrutinize harder. Of course one does need the report to conclude this!

      If someone tells me: “fill your form correctly and be honest. Then it doesn’t matter who the insurer is” I will accept.
      if someone tell me: “All claims repudiated are cases of falsification and fraud” I will certainly not agree. The Ombudsman can then pack up and go home.

  3. Dear FFc, please check the sum assured nos. from the report & you ‘ll come to the conclusion. As simple as that. 🙂



  4. Dear Shiva, in case of LIC, are you aware of the fact that majority of claims are for investment kind policies? Whereas the comparison you are making with Aviva or Aegon are for Term plans (majority). How these 2 things are same now?

    If one is comfortable with LIC & paying high prem. for that comfort, i’m not at all worried for the person in question. it’s OK to me. But this comfort should not come out from false facts.



    1. Ashal,

      How do you know the numbers for Aviva correspond to majority term plans? This distinction is not made in the IRDA report.

  5. Shivakumar A says:

    Kindly see the claim settlement ratio of 2011-2012 before taking term insurance.

    LIC premium may be higher but how others can be so cheap??

    Thing twice 🙂

  6. Shivakumar A says:

    Very simple but when it comes to claim, problems to nominee or NO CLAIM.

    1. CJ says:

      Aviva has a decent claim settlement ratio..

  7. ashal jauhari says:

    Dear Rajesh, you may purchase any online term plan based upon your requirement as well as comfort level be it Aviva or Kotak or Aegon Religare or ICICI.



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